In re Amman Blue Metals (GST AAR Tamil Nadu)
The Tamil Nadu Authority for Advance Ruling (AAR) has delivered its ruling in the case of M/s Amman Blue Metals regarding the applicability of Reverse Charge Mechanism (RCM) on purchases from unregistered suppliers under the Central Goods and Services Tax Act (CGST Act), 2017 and the Tamil Nadu Goods and Services Tax Act (TNGST Act), 2017. The applicant, a proprietary concern engaged in trading of M-sand, P-sand, Blue Metals, Boulders, and Hollow Bricks, had sought clarity on whether such purchases attract GST under Section 9(3) or Section 9(4) of the Act.
The applicant argued that Section 9(3) notifications did not cover these commodities and that the amendments to Section 9(4), read with Notification No. 7/2019-Central Tax (Rate) dated 29-3-2019, excluded them from liability under RCM. During the personal hearing, the Authorized Representative clarified that the concern was engaged solely in trading activities and not in construction or development projects. All goods in question were procured from intra-State unregistered suppliers. The Authority also examined whether the applicant could fall within the category of “promoter” as per the provisions governing Section 9(4), but the applicant confirmed they were not involved in construction projects.
